VUG vs. MFUS

Last updated Jun 6, 2026

VUG (Vanguard Growth ETF) and MFUS (PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF) are both Large Cap Growth Equities funds - VUG tracks the CRSP US Large Cap Growth Index while MFUS tracks the RAFI Dynamic Multi-Factor U.S. Index​. Both are passively managed. Over the past 5 years, VUG returned 14.33%/yr vs 12.37%/yr for MFUS. A 0.74 correlation means they provide meaningful diversification when combined. VUG charges 0.03%/yr vs 0.30%/yr for MFUS.

Performance

VUG vs. MFUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) and PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (MFUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VUG achieves a 5.80% return, which is significantly lower than MFUS's 14.06% return.

VUG

• 1D: -3.62%
• 1M: 0.03%
• YTD: 5.80%
• 6M: 4.57%
• 1Y: 23.98%
• 3Y*: 24.49%
• 5Y*: 14.33%
• 10Y*: 17.81%

MFUS

• 1D: -2.17%
• 1M: 1.19%
• YTD: 14.06%
• 6M: 14.00%
• 1Y: 26.47%
• 3Y*: 21.25%
• 5Y*: 12.37%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VUG vs. MFUS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	5.80%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	7.49%
MFUS PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF	14.06%	16.02%	20.17%	12.19%	-5.82%	24.10%	10.64%	26.17%	-7.30%	11.20%

Correlation

The correlation between VUG and MFUS is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (All Time) Calculated using the full available price history since Sep 7, 2017	0.74

The correlation between VUG and MFUS shifts across timeframes, from 0.60 (1 year) to 0.74 (all time), reflecting how their relationship changes across market environments.

VUG vs. MFUS - Sectors Allocation Comparison

Sectors	VUG	MFUS
Technology	53.5%	21.8%
Communication Services	17.3%	5.3%
Consumer Cyclical	12.2%	10.6%
Healthcare	4.6%	13.5%
Financial Services	4.3%	12.6%
Industrials	3.6%	12.6%
Consumer Defensive	1.5%	10.3%
Real Estate	1.0%	1.8%
Utilities	0.9%	1.7%
Basic Materials	0.6%	2.8%
Energy	0.4%	7.0%

Return for Risk

VUG vs. MFUS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VUG

VUG Risk / Return Rank: 38
VUG Sharpe Ratio Rank: 43
VUG Sortino Ratio Rank: 40
VUG Omega Ratio Rank: 41
VUG Calmar Ratio Rank: 30
VUG Martin Ratio Rank: 34

MFUS

MFUS Risk / Return Rank: 81
MFUS Sharpe Ratio Rank: 79
MFUS Sortino Ratio Rank: 80
MFUS Omega Ratio Rank: 77
MFUS Calmar Ratio Rank: 82
MFUS Martin Ratio Rank: 85

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VUG vs. MFUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) and PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (MFUS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VUG	MFUS	Difference
Sharpe ratio: Return per unit of total volatility	1.48	2.43	-0.95
Sortino ratio: Return per unit of downside risk	2.01	3.43	-1.41
Omega ratio: Gain probability vs. loss probability	1.26	1.44	-0.18
Calmar ratio: Return relative to maximum drawdown	1.46	4.16	-2.71
Martin ratio: Return relative to average drawdown	5.09	17.05	-11.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUG vs. MFUS - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.48, which is lower than the MFUS Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of VUG and MFUS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VUG	MFUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.48	2.43	-0.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.82	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.77	-0.16

Drawdowns

VUG vs. MFUS - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, which is greater than MFUS's maximum drawdown of -35.21%. Use the drawdown chart below to compare losses from any high point for VUG and MFUS.

Drawdown Indicators

	VUG	MFUS	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-35.21%	-15.47%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-6.39%	-10.14%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-15.39%	-7.46%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-18.22%	-17.39%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	—	—
Current Drawdown Current decline from peak	-4.83%	-2.17%	-2.66%
Average Drawdown Average peak-to-trough decline	-7.09%	-3.99%	-3.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.72%	1.56%	+3.16%

Volatility

VUG vs. MFUS - Volatility Comparison

Vanguard Growth ETF (VUG) has a higher volatility of 5.17% compared to PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (MFUS) at 3.71%. This indicates that VUG's price experiences larger fluctuations and is considered to be riskier than MFUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUG	MFUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	3.71%	+1.46%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	8.52%	+4.16%
Volatility (1Y) Calculated over the trailing 1-year period	16.26%	10.94%	+5.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.27%	15.06%	+7.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.47%	17.36%	+4.11%

VUG vs. MFUS - Expense Ratio Comparison

VUG has a 0.03% expense ratio, which is lower than MFUS's 0.30% expense ratio.

Dividends

VUG vs. MFUS - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.39%, less than MFUS's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MFUS PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF	1.38%	1.54%	1.45%	1.96%	2.07%	1.35%	1.72%	1.89%	1.69%	1.01%	0.00%	0.00%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and MFUS in my portfolio?

VUG and MFUS have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUG or MFUS?

VUG has higher volatility (5.17%) compared to MFUS (3.71%). In terms of maximum drawdown, VUG dropped -50.68% vs MFUS's -35.21%.

Which ETF is better, VUG or MFUS?

On 5-year performance, VUG leads with 14.33% vs 12.37% for MFUS. On fees, VUG is cheaper at 0.03% per year. On volatility, MFUS has been the lower-risk option at 3.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUG or MFUS?

Over the 5-year period, VUG has performed better with a 14.33% return vs 12.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or MFUS?

VUG is cheaper with a 0.03% expense ratio, compared with 0.30% for MFUS.

Which ETF pays a higher dividend yield, VUG or MFUS?

MFUS has the higher dividend yield at 1.38%, compared with 0.39% for VUG.

What is the main difference between VUG and MFUS?

VUG tracks CRSP US Large Cap Growth Index, while MFUS tracks RAFI Dynamic Multi-Factor U.S. Index​. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.03% for VUG and 0.30% for MFUS.

Which has better risk-adjusted returns?

MFUS currently has the higher Sharpe Ratio (2.43 vs 1.48), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.